The self-employed scheme will be available from June this year and run for three months but may be extended if necessary. In the meantime the Chancellor said people can access Universal Credit, business loans or keep on working.

HMRC will contact self-employed workers if eligible for the scheme and invite them to apply online.

Business groups welcome Chancellor's support for the self employed

Business groups have backed Chancellor Rishi Sunak's scheme to help self-employed workers through the COVID-19 crisis.

Dame Carolyn Fairbairn, CBI Director-General, said: 'Many self-employed people across the UK will be hugely relieved.

'These new measures will provide essential support to those facing significant uncertainty and loss of income.

'Given the complexity of the task, it's understandable this will take time to deliver. Fast clarity on how and when money will reach their bank accounts will help individuals to plan.'

Derek Cribb, CEO of the Association of Independent Professionals and the Self-Employed, said: 'This is an unprecedented package and a very welcome response to our campaign for freelancers and the self-employed.

'While this assistance is practical and wide-ranging it does not, however, cover all self-employed people. We will keep working to fill in these gaps.'

Mike Cherry, the National Chairman of the Federation of Small Businesses, said: 'This bold support package from the government will give much-needed help to vast numbers of self-employed workers.

'The self-employed community underpins the UK economy. They are the individual risk-takers who don't expect the same benefits as employees.

'Many tax-paying self-employed who will be helped by today's measures will be relieved. Although the deal is not perfect, the government has moved a very long way today.'